NEW YORK--(EON: Enhanced Online News)--Chimera Investment Corporation (NYSE:CIM) (the “Company”) today
announced the pricing of its underwritten public offering of 12,000,000
shares of its 8.00% Series B Fixed-to-Floating Rate Cumulative
Redeemable Preferred Stock (the “Series B Preferred Stock”), liquidation
preference $25.00 per share, for gross proceeds of approximately $300
million, before deducting the underwriting discount and other estimated
offering expenses. The Company intends to apply to list the Series B
Preferred Stock on the New York Stock Exchange under the symbol “CIM
PRB.” The offering is expected to close on February 27, 2017, subject to
customary closing conditions.

The Company has granted the underwriters an option for 30 days to
purchase up to an additional 1,800,000 shares of the Series B Preferred
Stock to cover over-allotments, if any.

Dividends on the Series B Preferred Stock will accumulate and be payable
from and including the date of original issue to, but not including,
March 30, 2024, at a fixed rate of 8.00% per annum of the $25.00
liquidation preference. On and after March 30, 2024, dividends on the
Series B Preferred Stock will accumulate and be payable at a percentage
of the $25.00 liquidation preference equal to an annual floating rate of
three-month LIBOR plus a spread of 5.791% per annum.

The Company intends to use the net proceeds of the offering to acquire
residential mortgage loans and other targeted assets and for general
corporate purposes, including, without limitation, to pay down
liabilities and other working capital items.

This offering is being made pursuant to an effective shelf registration
statement and prospectus and related preliminary prospectus supplement
filed by the Company with the Securities and Exchange Commission. This
press release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities, in
any state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.

The Company invests in residential mortgage loans, residential
mortgage-backed securities, real estate-related securities and various
other asset classes. The Company’s principal business objective is to
generate income from the spread between yields on its investments and
its cost of borrowing and hedging activities. The Company is a Maryland
corporation that has elected to be taxed as a real estate investment
trust.

Forward-Looking Statements

This press release includes “forward-looking statements” within the
meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Actual results may differ from
expectations, estimates and projections and, consequently, readers
should not rely on these forward-looking statements as predictions of
future events. Words such as “expect,” “target,” “assume,” “estimate,”
“project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,”
“will,” “could,” “should,” “believe,” “predicts,” “potential,”
“continue,” and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements involve
significant risks and uncertainties that could cause actual results to
differ materially from expected results. For example, the fact that this
offering has priced may imply that this offering will close, but the
closing is subject to conditions customary in transactions of this type
and may be delayed or may not occur at all.

Investors are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made. The
Company does not undertake or accept any obligation to release publicly
any updates or revisions to any forward-looking statement to reflect any
change in its expectations or any change in events, conditions or
circumstances on which any such statement is based. Additional
information concerning these and other risk factors is contained in the
Company’s most recent filings with the Securities and Exchange
Commission. All subsequent written and oral forward-looking statements
concerning the Company or matters attributable to the Company or any
person acting on its behalf are expressly qualified in their entirety by
the cautionary statements above.

Contacts

Chimera Investment CorporationInvestor Relations, 866-315-9930

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